2. On 1 July 2016, the financial position of Lee Lid was as follows: Carrying amount Fair value 400.000 1.000000 3.200.000 1,700 000 400.000 1.500.000 4.200.000 1.200,000 1. RODODO 200 000 2.200.000 1.500.000 400.000 10.400.000 3.000.000 Assets Cash Accounts receivable Plant Accumulated depreciation-plant Fixtures & fittings Accumulared depreciation-foctures & finings Land Vehicles Accumulated depreciation-vehicles Total assets Equity Share capital - 100.000 shares Retained coming Total equity Liabilities Accounts payat Loans Total liabilities Total equity and liabilities 1,220.000 5.000.000 400D DO 9.000.000 800.000 B00.000 600.000 800.000 1/400.000 10.400.000 Stan Ltd acquired all the assets and assumed all the liabilities of Lee Ltd on 1 July 2016. In exchange. Stan Ltd agreed to: Issue 5 Stan Ltd shares for every Lee Ltd share held. Stan Ltd shares were assessed to have a fair value of $8 per share. Costs of share issue were $1,200. Transfer a patent to the former shareholders of Lee Ltd, the patent had been internally generated by Stan Ltd and was carried at $800,000. It was considered to have a fair value of $2,400,000. Pay cash of $4.00 per share to the former shareholders of Lee Ltd for each share held in Lee Ltd. Half is paid on the date of acquisition and remaining half after one year. Assume discounting rate at 5%) At 30 June 2016, Lee Ltd had reported a contingent liability relating to a guarantee given by that company to another entity. Lee Ltd did not record the guarantee as a liability because of the difficulty of measuring the liability. The fair value of this contingent liability was assessed as $40,000. Stan Ltd incurred $9000 in costs in relation to accounting and legal fees in relation to its acquisition of Lee Ltd. Required Prepare the acquisition analysis in the records of Stan Ltd in relation to its acquisition of Lee Ltd at 1 July 2016 2. On 1 July 2016, the financial position of Lee Ltd was as follows: Assets Carrying amount Fair value (5) Cash 400 000 400.000 Accounts receivable 1.500.000 1.500.000 Plant 4.200.000 3.200.000 Accumulation-plant 1.200,000 Fixtures & fing 1.800.000 1.700.000 Accuedepreciation fores & fing 200.000 Land 2.200.000 3.000.000 Vehicles 1.600.000 1220.000 Accumulated depreciation - vehicles 400.000 Total assets 10.400.000 Equity Share Capital - 100.000 shares 5.000.000 Retained coming 4.000.000 9.000.000 Liabilities Accounts pay 600.000 600.000 Loans 800.000 100.000 Total liabilities 1.400.000 Total equity and abilities 10,400.000 Stan Ltd acquired all the assets and assumed all the liabilities of Lee Ltd on 1 July 2016. In exchange, Stan Ltd agreed to: Issue 5 Stan Ltd shares for every Lee Ltd share held. Stan Ltd shares were assessed to have a fair value of $8 per share. Costs of share issue were $1.200. Transfer a patent to the former shareholders of Lee Ltd: the patent had been internally generated by Stan Ltd and was carried at $800,000. It was considered to have a fair value of $2.400,000. Pay cash of $4.00 per share to the former shareholders of Lee Ltd for each share held in Lee Ltd. Half is paid on the date of acquisition and remaining half after one year. (Assume discounting rate at 5%) At 30 June 2016, Lee Ltd had reported a contingent liability relating to a guarantee given by that company to another entity. Lee Ltd did not record the guarantee as a liability because of the difficulty of measuring the liability. The fair value of this contingent liability was assessed as $40,000. Stan Ltd incurred $9000 in costs in relation to accounting and legal fees in relation to its acquisition of Lee Lid. Required Prepare the acquisition analysis in the records of Stan Ltd in relation to its acquisition of Lee Ltd at 1 July 2016. 2. On 1 July 2016, the financial position of Lee Lid was as follows: Carrying amount Fair value 400.000 1.000000 3.200.000 1,700 000 400.000 1.500.000 4.200.000 1.200,000 1. RODODO 200 000 2.200.000 1.500.000 400.000 10.400.000 3.000.000 Assets Cash Accounts receivable Plant Accumulated depreciation-plant Fixtures & fittings Accumulared depreciation-foctures & finings Land Vehicles Accumulated depreciation-vehicles Total assets Equity Share capital - 100.000 shares Retained coming Total equity Liabilities Accounts payat Loans Total liabilities Total equity and liabilities 1,220.000 5.000.000 400D DO 9.000.000 800.000 B00.000 600.000 800.000 1/400.000 10.400.000 Stan Ltd acquired all the assets and assumed all the liabilities of Lee Ltd on 1 July 2016. In exchange. Stan Ltd agreed to: Issue 5 Stan Ltd shares for every Lee Ltd share held. Stan Ltd shares were assessed to have a fair value of $8 per share. Costs of share issue were $1,200. Transfer a patent to the former shareholders of Lee Ltd, the patent had been internally generated by Stan Ltd and was carried at $800,000. It was considered to have a fair value of $2,400,000. Pay cash of $4.00 per share to the former shareholders of Lee Ltd for each share held in Lee Ltd. Half is paid on the date of acquisition and remaining half after one year. Assume discounting rate at 5%) At 30 June 2016, Lee Ltd had reported a contingent liability relating to a guarantee given by that company to another entity. Lee Ltd did not record the guarantee as a liability because of the difficulty of measuring the liability. The fair value of this contingent liability was assessed as $40,000. Stan Ltd incurred $9000 in costs in relation to accounting and legal fees in relation to its acquisition of Lee Ltd. Required Prepare the acquisition analysis in the records of Stan Ltd in relation to its acquisition of Lee Ltd at 1 July 2016 2. On 1 July 2016, the financial position of Lee Ltd was as follows: Assets Carrying amount Fair value (5) Cash 400 000 400.000 Accounts receivable 1.500.000 1.500.000 Plant 4.200.000 3.200.000 Accumulation-plant 1.200,000 Fixtures & fing 1.800.000 1.700.000 Accuedepreciation fores & fing 200.000 Land 2.200.000 3.000.000 Vehicles 1.600.000 1220.000 Accumulated depreciation - vehicles 400.000 Total assets 10.400.000 Equity Share Capital - 100.000 shares 5.000.000 Retained coming 4.000.000 9.000.000 Liabilities Accounts pay 600.000 600.000 Loans 800.000 100.000 Total liabilities 1.400.000 Total equity and abilities 10,400.000 Stan Ltd acquired all the assets and assumed all the liabilities of Lee Ltd on 1 July 2016. In exchange, Stan Ltd agreed to: Issue 5 Stan Ltd shares for every Lee Ltd share held. Stan Ltd shares were assessed to have a fair value of $8 per share. Costs of share issue were $1.200. Transfer a patent to the former shareholders of Lee Ltd: the patent had been internally generated by Stan Ltd and was carried at $800,000. It was considered to have a fair value of $2.400,000. Pay cash of $4.00 per share to the former shareholders of Lee Ltd for each share held in Lee Ltd. Half is paid on the date of acquisition and remaining half after one year. (Assume discounting rate at 5%) At 30 June 2016, Lee Ltd had reported a contingent liability relating to a guarantee given by that company to another entity. Lee Ltd did not record the guarantee as a liability because of the difficulty of measuring the liability. The fair value of this contingent liability was assessed as $40,000. Stan Ltd incurred $9000 in costs in relation to accounting and legal fees in relation to its acquisition of Lee Lid. Required Prepare the acquisition analysis in the records of Stan Ltd in relation to its acquisition of Lee Ltd at 1 July 2016
